Georgia plans to simplify banking licensing procedures for subsidiaries and branches of reputable foreign banks seeking to enter the local market. The proposed amendments, prepared by lawmakers Shota Berekashvili and Paata Kvizhinadze and other committee members, aim to attract financially stable international banks with strong reputations and transparent ownership structures.
Under the proposed rules, the National Bank of Georgia (NBG) will determine the list of acceptable international rating agencies, minimum credit rating requirements and countries whose banking supervision systems are considered reliable. Applicants will also have to meet the NBG's supervisory capital requirements.
The amendments will simplify documentation requirements, removing the obligation to provide detailed information about every shareholder. Instead, information will be required on major shareholders, intermediate ownership structures and ultimate beneficial owners.
The changes will amend the Law on Commercial Bank Activities. The NBG will have 12 months after the legislation takes effect to adopt or revise relevant regulations. The concept of a reputable foreign bank has been included in Georgian legislation since 2017, but the proposed amendments would make it easier for such institutions to obtain a banking license in Georgia. BMG has asked Parliament and the NBG whether the initiative is linked to interest expressed by any international bank in entering the Georgian market.
